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Semelhante a Objective Capital Precious Metals, Diamonds and Gemstones Investment Summit: Focus on Silver: Creating precious metals opportunities in the Canadian North - Tony Walsh
Semelhante a Objective Capital Precious Metals, Diamonds and Gemstones Investment Summit: Focus on Silver: Creating precious metals opportunities in the Canadian North - Tony Walsh (20)
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Objective Capital Precious Metals, Diamonds and Gemstones Investment Summit: Focus on Silver: Creating precious metals opportunities in the Canadian North - Tony Walsh
- 1. 10.00 – 10.25 Focus on Silver: Creating precious metals opportunities in the Canadian North Tony Walsh – CEO, Sabina Gold & Silver
- 2. Sabina Gold & Silver Corp. Creating precious metals opportunities in the Canadian North Hackett River Camp, looking to west 2
- 3. Forward Looking Statements This presentation includes certain "forward looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, mineral resources or reserves, exploration results and future plans and objectives of Sabina Gold & Silver Corp. are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 3
- 4. WHO ARE WE? Sabina Gold & Silver Corp. is an emerging precious metals company. The Company owns a highly prospective land package in one of the world’s newest and most politically stable mining jurisdictions - Nunavut, Canada. Sabina’s holdings comprise the Wishbone Greenstone Belt which includes the world class Hackett River project and is adjacent to the Company’s advanced staged Back River Gold Project 4
- 6. Nunavut is a politically safe mining jurisdiction.
- 7. Nunavut is actively looking for sustainable development through resources.
- 8. Permitting process is rigorous but well understood.
- 9. Strong relationships in place.
- 11. Hackett large enough to sustain infrastructure which could open the district for mining.5
- 12. 2010 STRATEGY FOR NUNAVUT PROJECTS Demonstrate world class size and economic viability of Hackett River Silver project Aggressively explore Wishbone Greenstone belt to add new deposits Become a mid-tier gold producer at Back River George Lake Camp 6
- 13. HACKETT RIVER – IN TOP 10 AND GROWING PRECIOUS METALS BASE METALS Geological resource PEA mineable resource Tonnes ( millions) HACKETT RIVER Data source: Galley et al. , Mineral deposits of Canada, 2007 and selected company websites Metal distribution using 2009 PEA metal prices in USD, $2.09 Cu, $0.88 Zn, $0.61 Pb, $13.20 Ag, $880 Au. 7
- 15. Kidd Creek & Horne Mine: decades long producers
- 16. Hackett River significant resource shallow, open pitable and completely open to depthWorld’s largest VMS deposits surface Meters 8
- 18. Higher grades and recoveries.
- 19. Resources have increased by 400% since 2004
- 20. Open pit NSR ~ $180/tonne In Situ ValueThe mineral resource estimate for Hackett River was prepared as part of the Preliminary Economic Assessment (PEA) update by Gordon Zurowski, P.Eng., Principal Mine Engineer of PEG Mining Consultants Inc. CIM Definition Standards (2005) have been used in defining the mineral resource categories. Project Management of the PEA study was conducted by Eric Harkonen, P.Eng. and Principal Project Manager/Mine Engineer of PEG Mining Consultants Inc. Both individuals are qualified persons as defined by NI43-101. 9
- 21. 2009 PRELIMINARY ECONOMIC ASSESSMENT Generates $1.8 billion net pre-tax cash flow 10
- 22. 2009 PRELIMINARY ECONOMIC ASSESSMENT 11
- 23. 12
- 24. 13 TOTAL CASH COSTS FOR PAYABLE SILVER PRODUCTION NET OF BY-PRODUCT CREDITS On a by-product net smelter basis, total cash costs per oz of silver production is expected to average minus US$4.06/oz over the first five years, and minus US$1.19/oz over the life of the mine (Figure 11). Source: Company reports, Dundee Securities estimates
- 29. SUCCESSFUL DRILLING IN DEPOSIT AREAS Main Zone West - 2009 drilling intersected massive sulphides and copper stringer mineralization outside current pit limits. East Cleaver – Flying Horse Area - 2009 drilling intersected massive sulphides and copper stringer mineralization outside current pit limits. 16
- 31. Targeted to increase resource by at least 10% by looking to:
- 32. Find copper/silver/gold stringer zones
- 33. Increase the size of existing deposits
- 34. Increase size through new near surface discoveries.
- 35. Targeted drilling within current pit shell aimed at converting waste to ore, reducing stripping ratios and increasing pit size.
- 36. Demonstrate a pipeline of exploration opportunities for years to come.17
- 38. New discovery – May Zone.
- 39. Belt includes over 95 mining leases and claims.
- 40. 150 km long x 30 km wide.
- 42. Pipeline of targets, both near and long term.18
- 44. Potential source of additional feed for proposed mill or defer underground mining.
- 45. Follow up drilling planned for 2010 $3m budgeted.
- 46. significant surface sampling at near by Watson Lake
- 47. Drill to resource by end of 20102009 Drillhole- 73 g/t Ag 10.9% Zn over 10.6m 2009 Surface sample 5,160 g/t Ag &30.3 g/t Au 19
- 49. Discovery in 2009 with limited drilling program.
- 50. High grade open-pitable gold target at Goose Lake.
- 51. Target add 500k–750k oz.
- 52. Project offers track for nearer term gold production for Sabina.
- 53. Wishbone offers a pipeline of gold exploration opportunities.Dell Prospect George Lake Camp 20
- 54. BACK RIVER 2007 RESOURCES 21
- 55. BACK RIVER 2009 EXPLORATION Discovery at Echo Zone Goose Deposit 2007 resource Indicated 1.58N tonnes at 11.9 g/t Au, Inferred 0.99M tonnes at 9.2 g/t Au Echo Gold Zone 2009 Discovery Drillhole --8.2 g/t Au/15.2m 22
- 57. $10m budget23
- 59. 8km from existing resource at Goose
- 60. Strike length of 300m depth of 150 m and open
- 61. Intercepts include hole GSE10-31 returning 16.92g/t Au over 22m including 36.58g/t Au over 4.7
- 62. Three drill rigs continue to work at Llama to complete winter drilling24
- 63. 25 Llama Lake Discovery – Reported Drill Holes
- 65. Sample historical hanging-wall drilling
- 66. Compile data for conceptual open pit studies in fall 2010Area with Limited or No Drilling Internal Conceptual Open Pit Goose Deposit Indicated 1.58N tonnes at 11.9 g/t Au, Inferred 0.99M tonnes at 9.2 g/t Au 26
- 68. Internal interpretations are that the Lalor deposit horizon is near surface on the Cook Lake North property
- 69. Sabina team is familiar with project
- 70. Gives us presence in another prolific mining jurisdiction in Canada
- 71. Project provides short and long term opportunities for discoveries
- 72. Close to infrastructure – can be worked year round providing news flow counter cyclical to Nunavut properties
- 73. Diversifies Sabina’s portfolio of assets27
- 75. RED LAKE PROPERTIES GOLDEN SIDEWALK 100% SABINA SKINNER 100% SABINA REDAURUM (Sabina 20% carried interest) Red Lake Camp >23 Million Oz Au Produced NEWMAN- MADSEN 50/50 with Premier Gold Mines Inc. 29
- 78. Strong Treasury
Notas do Editor
- As I mentioned, the territory o f Nunavut is one of the world’s safest mining jurisdictions and one of the most prolific geological provinces in the world. Oil, base metals, precious metals as well as Diamonds are bountiful. As a newly created territory, Nunavut is actively looking for sustainable development and they see one of those opportunities through resource development. The permitting regime in the territory is new and rigorous, but well understood and evolving in its efficiency with each application. Agnico’s Meadow bank project is currently being commissioned and will be pouring its first gold some time this quarter. The Meadow Bank operation is an example of large, complicated operation, making it through the permitting process in Nunavut.We have strong relationships in Nunavut and see substantial opportunities for partnerships.Hackett River is the largest most advanced project and requires a winter road and deep sea port. Fortunately , Hackett River the only project in the area currently big enough to sustain the costs of building a road an port – as I’ll demonstrate in a minute.Sabina has neighbouring projects in this region, the High Lake and Izok lake projects (owned by MMG – a division of a large Chinese base metals producer) as well as the Musk project (owned by Xstrata). None of these neighbouring projects are big enough to economically sustain their own infrastructure, yet all would rely on a road an port to become viable entities. This puts Sabina in a solid position to strongly influence an entire mining region and also, to potentially partner on some of the costs of infrastructure.NEWAs Peter Taptuna, Nunavut’s Deputy Premier and Minister of Economic Development and Transportation said recently, “Imagine investing in a company that owned the entire Kirkland Lake belt?” Certainly Kirkland Lake or Red Lake in their infancy, were logistically challenged. Communities and infrastructure grew up around those deposits and mines. We see that opportunity here with the Hackett River Greenstone belt …it is a Company maker in our view.
- Slide 3 – The resources I spoke about on the previous slide are cumulative for the company, but they are not strewn out in deposits across the country or countries. They are all nicely packaged in the vast Hackett River greenstone belt primarily controlled by Sabina in the West Kitikmeot region of Nunavut in Canada’s north. The projects in this consolidated land package include the Hackett River silver – zinc deposit, the Back River Gold project as well as the wishbone claims. This greenstone belt runs approximately 200 km north/south and 20 east west and contains not only the significant resource I’ve just told you about, but hundreds of exploration targets.The proximity of significant resources of gold and silver not only create synergies from an exploration/development perspective, for example, shared management, personnel and equipment. But also offer opportunities to spread the costs of infrastructure and development over a large precious metals resource base.
- It is easy to say that Hackett River is one of the largest projects of it’s type in the world. This chart depicts Hackett river in comparison to other projects of it’s type in the world.With an 80 million tonne geological resource – 60 million mineable, Hackett is easily already in the top 10. These numbers also don’t include this year’s drilling. Other projects of this type have been successfully producing for decades (example kidd creek) and have supported infrastructure such as railways smelters, roads and larges mills. Hackett River has demonstrated is now has the critical mass to support large infrastructure, but it has also demonstrated potential to grow significantly. Hackett River is likely most analagous to the Horne Mine in the Noranda Belt.Isok Lake and High Lake – on the other end of this spectrum are both rich deposits in our region, but do not have the tonnage to support their own infrastructure. Again, there are likely opportunities for partnerships with these companies going forward.Although a VMS deposit that has a large base metal component, approximately 45% of Hackett’s metal is precious metals, which makes this a very rich deposit.
- It is easy to say that Hackett River is one of the largest projects of it’s type in the world. This chart depicts Hackett river in comparison to other projects of it’s type in the world.With an 80 million tonne geological resource – 60 million mineable, Hackett is easily already in the top 10. These numbers also don’t include this year’s drilling. Other projects of this type have been successfully producing for decades (example kidd creek) and have supported infrastructure such as railways smelters, roads and larges mills. Hackett River has demonstrated is now has the critical mass to support large infrastructure, but it has also demonstrated potential to grow significantly. Hackett River is likely most analagous to the Horne Mine in the Noranda Belt.Isok Lake and High Lake – on the other end of this spectrum are both rich deposits in our region, but do not have the tonnage to support their own infrastructure. Again, there are likely opportunities for partnerships with these companies going forward.Although a VMS deposit that has a large base metal component, approximately 45% of Hackett’s metal is precious metals, which makes this a very rich deposit.
- I’ll talk briefly about the individual assets.Hackett River is a large volcanic massive sulphide deposit with current mineable resource of 60 million tonnes of ore and a geological resource of 80 million tonnes. The mineable resource includes of 265 million ounces of silver and 4.3 billion pounds of zinc, it also contains copper, lead and gold. These resources are found in four different deposits in the project area within a 2km corridor. Since Sabina became involved with the project in 2004, the resource has increased 400%. From an exploration standpoint, only highly productive properties respond this way. These resources are made up from five deposits, the East & West Main zones, the Boot Lake Zone, the East Cleaver Zone and the Jo Zone. All of these deposits are open along strike and to depth and are contemplated to be mined by open pit – extending to underground when the close to surface resource has been exploited.
- In December of 2009, a 43-101 preliminary economic assessment (or PEA) completed by PEG mining consultants was filed on Hackett River. The study indicates a very robust project with an NPV of $975 million (at a 5% discount), cash flow of $1.8 billion and an IRR of 25.9%. The study considers mining 12,000 tonnes per day by open pit for 10 years moving into underground mining for another 6 years. Initial capex for the project is approximately $668 million (including building a road and a port) with sustaining capital of $340 million over the life of mine.